HYDERABAD:
Telangana and
Andhra Pradesh have raised over Rs 94,000 crore in open market
borrowing
(OMB). The AP government had raised Rs 50,896 crore from the market, while its Telangana counterpart Rs 43,784 crore during the financial year 2020-21.
Union minister of state for finance Pankaj Chaudhary, in a reply to BJP MP CVL
Narasimha Rao
in
Rajya Sabha
, said: “For the current financial year, based on the methodology prescribed by the 15th
Finance Commission
, the normal net borrowing ceiling (NBC) of the states has been fixed at 4% of gross state domestic product (GSDP). Thus, NBC for Andhra Pradesh and Telangana is Rs 42,472 crore and Rs 43,138 crore respectively.”
Of the normal NBC of 4% of GSDP allowed to the states for the current financial year, 0.5% of GSDP has been earmarked for the incremental capital expenditure to be incurred by states during 2021-22. In addition, the states were also allowed to avail additional borrowing of up to 0.5% of GSDP based on certain performance criteria in power sector.
As a part of
Aatmanirbhar Bharat package, states were allowed additional borrowing ceiling of 2% of their GSDP in the 2020-21 fiscal.
“No restriction was imposed on the states for utilisation of the proceeds of the additional borrowing. Andhra Pradesh had completed the stipulated reforms in three areas namely, one nation one ration card, ease of doing business and urban local bodies reforms. Andhra Pradesh had also partly completed stipulated reforms in power sector. On meeting the reform criteria, the state was eligible for additional borrowing of 0.90% of GSDP. Thus, additional borrowing permission of 1.90% of GSDP, amounting to Rs 19,192 crore was given Andhra Pradesh in 2020-21,” the MoS said.
Telangana had completed the stipulated reforms in three areas: one nation one ration card, ease of doing business, and urban local bodies reforms. On meeting the reform criteria, Telangana was eligible for additional borrowing of 0.75% of GSDP.
“Additional borrowing permission of 1.75% of GSDP, amounting to Rs 17,558 crore was issued to Telangana during 2020-21,” he added.
Sudhakar Reddy Udumula is the Editor (Investigation) at the Times...
Read MoreSudhakar Reddy Udumula is the Editor (Investigation) at the Times of India, Hyderabad. Following the trail of migration and drought across the rustic landscape of Andhra Pradesh and Telangana, Sudhakar reported extensively on government apathy, divisive politics, systemic gender discrimination, agrarian crisis and the will to survive great odds. His curiosity for peeking behind the curtain triumphed over the criminal agenda of many scamsters in the highest political and corporate circles, making way for breaking stories such as Panama Papers Scam, Telgi Stamp Paper Scam, and many others. His versatility in reporting extended to red corridors of left-wing extremism where the lives of security forces and the locals in Maoist-affected areas were key points of investigation. His knack for detail provided crucial evidence of involvement from overseas in terrorist bombings in Hyderabad.
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